B&W Announces $36 Million in Contracts for Naval Reactors Assembly and Materials Procurement

CHARLOTTE, N.C.--()--The Babcock & Wilcox Company (B&W) (NYSE:BWC) announced today that its subsidiary Babcock & Wilcox Nuclear Operations Group, Inc. (B&W NOG) has received two U.S. Naval Reactors Program contracts totaling approximately $36 million.

The larger of the two awards, valued at approximately $32 million, is for the assembly of nuclear propulsion components for Virginia Class submarines. Work began in the fourth quarter of 2012 and will be performed at B&W’s Lynchburg, Va. facility over a four-year period.

Under the second contract, worth approximately $4 million, B&W will procure long-lead materials related to the manufacture of nuclear components for Virginia Class submarines.

“B&W is pleased to continue providing the U.S. Naval Reactors Program with products and services through these two new contracts,” said Peyton S. Baker, President of B&W NOG. “The role that B&W’s unique capabilities play in preparing and supporting the men and women who serve aboard the U.S. Navy’s nuclear fleet is a source of immense pride for our workforce.”

B&W offers a complete range of nuclear components and services, including the manufacture of nuclear reactor components for U.S. Navy submarines and aircraft carriers, as well as other nuclear and non-nuclear R&D and component production. The company employs more than 3,900 people with operations in Virginia, Ohio, Indiana and a subsidiary in Tennessee.

About B&W
Headquartered in Charlotte, N.C., The Babcock & Wilcox Company is a leader in clean energy technology and services, primarily for the nuclear, fossil and renewable power markets, as well as a premier advanced technology and mission critical defense contractor. B&W has locations worldwide and employs approximately 12,700 people, in addition to approximately 10,400 joint venture employees. Learn more at www.babcock.com.

Cautionary Statement Regarding Forward Looking Statements
B&W cautions that this release contains forward-looking statements, including statements relating to the performance, timing and value, to the extent contract value can be viewed as an indicator of future revenues, of the U.S. Naval Reactors Program contracts. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contracts and adverse changes in U.S. Government appropriations. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see B&W's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2011. B&W cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

Contacts

The Babcock & Wilcox Company
Media Contact:
Carla Parks Wooley, APR, 434-522-5753
Manager, Employee Communications & Public Relations
cjparks@babcock.com
or
Investor Contact:
Jenny L. Apker, 704-625-4937
Vice President, Treasurer and Investor Relations
investors@babcock.com

Release Summary

Babcock & Wilcox Nuclear Operations Group, Inc. (B&W NOG) has received two U.S. Naval Reactors Program contracts totaling approximately $36 million.

Contacts

The Babcock & Wilcox Company
Media Contact:
Carla Parks Wooley, APR, 434-522-5753
Manager, Employee Communications & Public Relations
cjparks@babcock.com
or
Investor Contact:
Jenny L. Apker, 704-625-4937
Vice President, Treasurer and Investor Relations
investors@babcock.com